The research proposed will attempt to replicate, validate and extend an ongoing study of a community alternative for the treatment of schizophrenia. It will expand a long-term (2 years post-discharge) comparative outcome study of schizophrenics by establishing a new research site as well as two new patient populations (N equals 60 each) of young, first-break schizophrenics; one treated in a non- professionally staffed community residence, the second receiving "usual" treatment on the ward of a community mental health center. The philosophy of the community residence is one we have termed a "developmental crisis" orientation. The psychotic experience is viewed as a crisis requiring that the experience be taken seriously, and that the individual be allowed to experience it in the context of a warm, empathetic, supportive, facilitative human relationship. In so much as possible, it should not be quelled, repressed, or aborted with phenothiazines. The over-all aim of this residence is to enhance the possibility that the psychosis will be integrated into the continuity of the individual's life, a state which has been shown to be associated with better long-term outcome. Data obtained at several points in time (admission, discharge, 1, 6, 12, 18, and 24 months post-discharge) from a variety of points of view (independent psychiatric, house/ward staff, family and self reports), which assess outcome in terms of symptoms, overall level of psychosocial functioning, and internal change, will be compared across groups. These data will be subjected to analyses of variance and covariance for repeated measures over time. Short and long-term comparative costs will be compared, and we will attempt to identify subgroups of responders and non-responders to the different milieus. Our specially trained non-professional staff will be studied and compared with other mental health personnel. Their relationships and interactions with patients (therapeutic "process") will be studied and correlated with outcome.